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You have most probably heard this message over and over but there is a good reason for this – it is so important.

To use a time honoured building metaphor, the basics are the foundations upon which your wealth is built on.

Get the following right and you’re well on your way:

1. Start early – the earlier you start the more you can earn (remember about the power of compounding returns)
2. Invest often – rather than accumulating a large sum before you invest, invest little amounts often
3. Reinvest distributions – resist the urge to spend your earnings
4. Be goal driven – know why you’re investing
5. Pay yourself first – you’re your most important creditor (it’s your time and effort after all)
6. Diversify – this is the old ‘don’t put all your eggs in the one basket’ story
7. Focus on investing not timing – how long you’re in the market is more important than worrying about when to enter the market
8. Invest for the long term – concentrate on long term returns rather than daily fluctuations.

Then there are what could be called the overarching rules:

• Understand how you respond to risk;
• Always consider your own unique financial situation.

Our members’ financial planners help you to focus on getting the basics right